Mortgage loans have been harder to come buy every since the market took a hit. Now lenders are much more strict and thorough with the lending process. In the past, far too many homebuyers were getting qualified for loans that they weren’t fit to pay back, and this is what caused a lot of the foreclosures that occurred. If you want a decent loan in this day an age, you’re going to need to know how to play the game. Let’s take a look at a few tips to get good rates on Mortgages in Reno, Nevada.
Make sure you have enough disposable income before looking for a loan. For instance, do you currently have other debt obligations that are eating away at your monthly income (i.e. car notes, student loans, credit cards, etc.)? Banks, such as the Great Basin Federal Credit Union, like to see borrowers with plenty of disposable income to go around. If you’re barely covering these obligations right now, who’s to say you’ll be able to cover your mortgage? Those who have too much debt, and too little income, will be told that their DTI (debt-to-income) ratio is too high. Pay off excess debt before buying your home.
Decide on whether a fixed or adjustable mortgage is best for you. Those who opt for fixed mortgages generally do so because there’s no risk that the rates will increase. However, fixed Mortgages in Reno, Nevada will not decrease either. Fixed-rate mortgages are much more secure, and you’ll have to pay for this security; banks make you pay by making fixed rates higher than normal.
Adjustable Mortgages in Reno, Nevada aren’t as secure as fixed-rate loans. Many homebuyers would rather lock-in a higher fixed mortgage because of the uncertainty with adjustable loans. However, adjustable mortgages can go either up or down. After your initial loan period is up, you could possibly be rewarded with a slight decrease on your mortgage payments, which is something everyone could use.
Consider all of these options before you sign on the dotted line. When you know what to expect you’ll likely make better choices. Make sure your finances are in order before seeing your lender, and think long and hard about which type of mortgage rate is right for you.
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